D Company Working Capital Management Research

Working capital management is the core component of enterprise management,involving all aspects of production and operation activities.As the market plays a decisive role in the allocation of resources,investors in the capital market must clearly understand the size,efficiency and management mode of the enterprise’s working capital.Fact-based working capital management focuses on simple working capital management items such as inventory and accounts receivable,and optimizes the working capital by adjusting the structure and the amount of holdings.The single analysis approach ignores the business relevance of each element.Based on the working capital management of channels,this paper reclassifies the working capital projects,and makes a correlation analysis between the enterprise’s working capital management and its purchase,production and marketing channels,so as to make a more comprehensive analysis of the enterprise’s working capital management.Moreover,the focus of the management mode is changed from "capital" to "operation",and the working capital management is studied as a whole.This paper mainly adopts literature research,case study and comparative analysis to study working capital management.Firstly,it classifies the domestic and foreign literature and summarizes the relevant theories of working capital.Secondly,taking company D as an actual case,the scale of working capital and the management mode of working capital are analyzed.At the same time,company D was analyzed from the aspects of elements and channels.In the aspect of elements,company D was analyzed from the aspects of accounts receivable,inventory,accounts payable and other aspects of management.In terms of channels,the three channels of purchase,production and sales of enterprises are analyzed one by one,the financial statements disclosed by D company from 2013 to 2018 are collected,the data extracted from the financial reports are calculated,sorted and classified,and the L companies in the same industry are selected from the same industry for comparative analysis.Finally,through the analysis of the enterprise from the aspects of elements and channels,we can see what problems D company has in the current working capital management,and at the same time provide relevant Suggestions for the enterprise.